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NS&I releases new issues of Guaranteed Growth Bonds and Guaranteed Income Bonds with reduced purchase limits

NS&I is reducing the maximum purchase limit for new sales of 1 and 3-year terms of Guaranteed Growth Bonds and Guaranteed Income Bonds, from £1 million to £10,000 (£20,000 jointly) from today (11 June 2018).

The current interest rate of the 1 and 3-year Issues of Guaranteed Growth Bonds and Guaranteed Income Bonds will remain unchanged.

Customers who have maturing Guaranteed Growth Bonds and Guaranteed Income Bonds are able to renew their investment and reinvest the full value of their holding into these Issues.

Product New Issue Maximum Purchase Limit Effective from
Guaranteed Growth Bonds, 1-year term (Issue 63) 1.50% gross/AER guaranteed for 1 year £10,000 11 June 2018
Guaranteed Growth Bonds, 3-year term (Issue 58) 1.95% gross/AER, guaranteed for 3 years £10,000 11 June 2018
Guaranteed Income Bonds, 1-year term (Issue 63) 1.45% gross/1.46% AER, guaranteed for 1 years £10,000 11 June 2018
Guaranteed Income Bonds, 3-year term (Issue 58) 1.90% gross/1.92% AER, guaranteed for 3 years £10,000 11 June 2018

Jill Waters, Retail Director, NS&I, said:

“Guaranteed Growth Bonds and Guaranteed Income Bonds have been on sale since 1 December 2017 and have proven extremely popular.

“We are pleased to have given savers over six months to invest larger amounts, but these changes to the investment limit will allow us to manage demand in order to achieve our Net Financing target for 2018-19, while continuing to deliver positive value to taxpayers.

“The interest rates on both Guaranteed Growth Bonds and Guaranteed Income Bonds will remain unchanged and present a fair offer to savers. Customers who have invested previously will be able to renew existing investments at maturity at the purchase limit they purchased at. As with all our products and investments, NS&I offers 100% security on all deposits.”

Both 1 and 3-year terms of Guaranteed Growth Bonds and Guaranteed Income Bonds are available to purchase online only through nsandi.com. The Bonds can be managed online, by phone and by post and are open to people aged 16 and over.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  2. NS&I brought Guaranteed Growth Bonds and Guaranteed Income Bonds back on to sale on 1 December 2017. More details here
  3. Information on our full product range can be found here.
  1. NS&I’s Net Financing target for 2018-19 was confirmed as £6 billion, within a range of £3 billion to £9 billion at the Spring Statement on 13 March 2018. NS&I’s 2018-19 Value Indicator target is to deliver £125 million, with a lower limit of £0 (zero).
  1. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
  2. Gross is the taxable rate of interest without the deduction of UK Income Tax.
  3. For further information please contact the NS&I media team.

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